Tips on How to Negotiate Air Freight Rates

Knowledge is the most important thing to take into consideration before you enter any negotiations on shipping contracts. There are many factors that determine freight cost. Knowing how air freight rates are structured will provide you with a good understanding as to which aspect you could negotiate. Small savings on many places will sum up to one big saving. Here are some great negotiating tips:

First, determine what is a “good deal.” It could be more value for your money, time saved, incentives for repeat customer, or offering you more for your money in the form of better customer service quality. A bad deal, on the other hand is one that does not involve any of the above.

The following are some important things to keep in mind and look for:

1. Better air freight rates could usually be misconceived and made to look as “good rates.” This isn’t always the case. If you’re paying over the odds and the forwarder cut the rate by 5 percent, then you can still be paying a higher price when compared to other forwarders. Consider the quotation carefully and compare it to other shippers’ quotes.

2. The weight, size, number of items, and the destination of the load could determine a forwarder’s quotation. But not so many people know that factors such as packaging, road conditions, shape of the package, whether or not the freight it hazardous, as well as the miles between stops are also considered from the freight forwarder’s end. So they all should also be taken into account before any quotation could be fairly issued.

3. The company offering the cheapest rate is not necessarily the best forwarder. Often, in the freight forwarding industry, the general consensus is that customers get what they pay for. Make sure that your freight forwarder is legitimate and has a good reputation. Go over reviews on rates, services offered, and quality of customer service and then judge them using the experiences of other people. You can do a quick Google search to get enough information you need.

4. Carefully check the terms and conditions of a company before signing any contract. Familiarize yourself with any drawbacks that might be hidden within the contract. Be sure to read the fine print. Finding great service that’s free from pitfalls could trigger the start of a long, strong, and productive business relationship between a customer and a freight forwarder.